UhuToken transfers existing logics adapted to the blockchain.
Milestones in the development of crypto and blockchain technology to date
A rapid development
Satoshi Nakamoto's invention of Bitcoin in 2009 heralded an era of rapid development in blockchain technology. This led to the development of the basic features of a currency that also allows payment transactions without a centralised authority - directly from the sender to the recipient. This was accompanied by the development of a scheme that organises decision-making between the various parties - the so-called consensus algorithm. This resulted in a network that does not require trust for regulated processes, i.e. in which the participating parties do not have to trust each other.
A more effective blockchain
With the development of static websites, starting in the dotcom bubble, towards intensive user experiences, Web2 was created. Now the Ethereum blockchain was steadily advancing with a solution for Web2 - basically a decentralised version of Web2. To this end, a programming language was developed that also enables the implementation of any technically possible programme on the blockchain, which was previously not possible with Bitcoin and the associated programming language Bitcoin Script. Ethereum thus established a new market from which various other blockchains and innovations emerged.
Lightning-fast transactions
However, the Ethereum blockchain has also reached its limits in recent years: Ethereum has scaling problems in that only a small number of transactions can be processed by the blockchain. This problem is solved by the new generation of layer 2 chains, above all the polygon blockchain. This uses a combination of three new consensus algorithms and other processing structures that simplify software development with the Solana blockchain and make it more scalable.
Further development of blockchain technology by UhuToken
The problem
Exchange rate risk in the intermediary
The explanation
There are three different ways to carry out transactions via the blockchain.
- The first is the simplest and therefore most incompatible, the direct transaction. Here, however, the sender and recipient need the same currency for a successful transaction - a situation that rarely occurs in a currency competition area.
- The second is with a peer-to-peer solution. Here, the exchange of two currencies is carried out by different people who are already willing to exchange one currency for the other. Not only does each participant have different capacities, but also different values - interesting for small sums, but not scalable.
- The third solution integrates a liquidity pool, a decentralised exchange (DEX). The smart contract systematises and standardises the peer-to-peer participants. As there are still many different currencies among the participants, the liquidity pool uses an intermediary that acts as a general medium of exchange - but for each transaction, the full value of the transaction lies in this intermediary for a moment. The exchange rate fluctuations of this intermediary create an exchange rate risk.
The solution for the traditional financial world
Transfers between different currencies are often processed with a delay via currency exchanges
The UhuToken solution on the blockchain
UhuToken's technical and patented solution is based on two combined elements.
- The first part of the solution is the type of TokenPay smart contracts. These allow a different recipient address to be specified alternately in a cross-hierarchy liquidity pool transaction. This means that the result of the liquidity pool swap, the stablecoins, are sent directly to the merchant's wallet address. Within a transaction and a swap, funds are transferred from person A to person B.
- The second part of the solution is the new liquidity pool implementation and the special propagation of transactions. These make it possible to execute several transactions directly one after the other in a block so that the exchange rate of the intermediary used cannot technically change between the two transactions.
The problem
Arbitrage between different exchanges
The explanation
When exchanging currencies via the blockchain, there are three different ways to determine the exchange rate.
- The first is the simplest and most incompatible, the manual agreement. Here, however, the sender and recipient must know, trust and agree with each other for a successful transaction - a situation that is difficult in a technically pseudonymous world.
- The second is with an Oracle solution. Here, the exchange rate is requested from a central server and transferred to the rate on the blockchain. However, this results in a time lag, as the Oracle is inevitably one block behind - not a problem for small sums, but not scalable and, above all, not independent of central instances.
- The third solution is based on the free market. Here, no exchange rate is fixed, but is created by supply and demand. In principle, the market itself equalises arbitrage between the various exchanges and therefore also on the blockchain. The basic assumption here is that currency flows always flow in both directions - a fatal fallacy, especially as exotic currency areas are particularly interesting for blockchain applications. Moreover, although the market would balance out the arbitrage itself, this would always be at the expense of the participants.
The solution for the traditional financial world
Currency exchange rates are offset in the short term by foreign currency holdings and in the long term by the central banks themselves
The UhuToken solution on the blockchain
UhuToken's technical and patented solution is based on two combined elements.
- The first part of the solution is TokenPay's innovative multi-level pool structure. This enables the respective currencies in a pool to be balanced against each other via a higher-level pool. This balancing takes place on the basis of the transactions that have taken place and thus simulates the function of a central bank in traditional currency markets.
- The second part of the solution is various utility tokens in the background. These enable the individual smart contracts to read a circulating balance and a change in the intermediary over time in a decentralised manner using the account status of the respective utility tokens. Based on this, the cash flow of different currencies and stablecoins can be balanced without an oracle - i.e. without a central instance and therefore without delays and costs.
UhuToken manages to utilise the advantages of blockchain technology without any disadvantages.
Without:
- Exchange rate risk
- Arbitrage
transactions can be used systematically for purchases or transfers.
Users benefit from:
- Low transaction fees
- Low Co2 consumption
- Maximum privacy
- Minimum transaction duration
Together with partners it is possible to realise transactions
- Pseudonym with stablecoins
- Without wallet from bank account
to be carried out.
Overall, UhuToken with its TokenPay infrastructure always remains completely decentralised on Polygon and therefore never has any influence on the company:
- Access to money
- Data access
- System influence
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